Friday, June 24, 2011

DBSS Tampines Centrale 8

DBSS prices slashed after uproar

Sim Lian Group announced the lowering of prices of its DBSS flats at Centrale 8 in Tampines by up to $102,000. -AsiaOne After much public outrage, property developer Sim Lian Group last night announced that they are lowering the prices of its Design, Build and Sell Scheme (DBSS) flats at Centrale 8 in Tampines by up to $102,000.

The developer had earlier asked for $880,000 for the biggest 5-room flats for the units in Tampines. In a Straits Times report, it now says the 'confirmed price range' of its Centrale 8 units are as follows: three-room units now cost up to $445,000 - down from $510,000, four-room flats for $592,000, down from $683,000, and five-room units will now cost up to $778,000, or $663 psf

Commenting on the backlash on the prices they announced last Thursday, it said that those prices were only 'indicative prices'.

The Straits Times reported that in a statement, the developer said: "It is regrettable that during the application period, the media and members of the public did not take note of our repeated public emphasis that the price range which we had announced was only an indicative price range, and would not be the final sale prices for the respective types of flat units."

Sim Lian's announcement of its 'confirmed price range' came in the heels of a letter from the Ministry of National Development to the Straits Times Forum page that it would be reviewing the DBSS as part of its overall review of housing prices.

The public outrage, with Singaporeans commenting on various forums and even sending letters to minister Khaw Boon Wan, had prompted the minister to write a blog post last Saturday, where he noted that the "negative reaction from the ground was not surprising". He also said that buyers can always choose not to buy, if they find the flats have been priced too high.

With its move to lower the prices, Sim Lian said it arrived at the confirmed price range by taking into account resale prices of HDB flats in the area, as well as other factors like proximity to the transport network, good public facilities, prevailing economic conditions, and other amenities.

To date, it is the first developer to set indicative prices during a DBSS launch, only to lower them by a considerable amount a week later.